New Civil Service procurement contract to promote competition

The Cabinet Office has announced the details of a new Civil Service training contract that will be the first to mandate greater levels of competitiveness in public sector procurement.

A £250 million contract to provide training across the Civil Service has been awarded to Capita Workplace Services with the stipulation that a minimum of 51 per cent of this business is delivered via an open and competitive supply chain.

The aim of this initiative is to ensure that small businesses also have access to government business, thus promoting innovation and competition in terms of pricing.

Francis Maude, minister for the Cabinet Office, said: "This new contract exposes the myth that there is an inherent contradiction between centralising procurement and supporting small businesses."

This comes after Clive Davenport, chair of the trade and industry policy unit at the Federation of Small Businesses, told Guardian Professional that increased opportunities for small companies in public sector procurement will be good for the economy as a whole.

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